Pipe and valve fitter John Bell Pipeline Equipment Company saw profits fall 85 per cent in the 2015 year as a result of lower activity in the oil and gas sector.

The Inverurie-based company, which supplies pipes, fittings and valves to the oil and gas, petrochemical, utilities and food and drink industries, notes turnover fell 21 per cent to £14 million in the 2015 year to December and pre-tax profits dropped 85 per cent to £322,460 (2014: £2.21 million).

The company notes in accounts now filed with Companies House, gross profits also came under pressure as a result of wider industry pressure in oil and gas firms to reduce costs in a lower oil price environment.

John Bell said it plans to diversify in the coming year in a bid to gain share in other markets.

Staff numbers rose to 60 on average in the 2015 year, up from 52 the prior year, and salaries increased to £2.44 million (2014: £2.21 million) and directors took a 34 per cent pay cut.

John Bell Pipeline Equipment Company is a subsidiary of Yorkshire-based National Tube Stockholders Ltd.